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Tesla Norway Payout: $163M to Drivers After Court Ruling

May 24, 2021
Tesla Norway Payout: $163M to Drivers After Court Ruling

Tesla Ordered to Compensate Model S Owners Over Charging Time Issues

A conciliation council in Norway has mandated that Tesla provide financial restitution to owners of the Model S. This decision stems from a finding that a software update resulted in extended charging durations, as reported by Nettavisen on Monday.

Compensation Details

Those Model S owners deemed eligible under the council’s ruling are set to receive 136,000 Norwegian kroner, which translates to approximately $16,000 per vehicle.

Origin of the Dispute

The initial complaint was lodged by thirty Tesla drivers in December 2020. They asserted that charging speeds were negatively impacted following a software update deployed the prior year.

The reduced performance specifically affected Tesla Model S vehicles manufactured between 2013 and 2015.

Potential Financial Impact for Tesla

Considering Tesla sold roughly 10,000 Model S vehicles in Norway during the relevant period, the total potential payout could reach 1.36 billion kroner, equivalent to approximately $163 million, according to Nettavisen.

Timeline for Response and Appeal

Tesla did not offer a response to the complaint before the judgement was delivered. The company is required to remit payment by May 30th.

An appeal of the ruling can be submitted to the Oslo Conciliation Board by Tesla, with a deadline of June 17th.

Previous Legal Challenges

This situation isn't isolated. In 2019, a Tesla owner initiated legal action against the company in a Northern California federal court.

The lawsuit alleged fraud and a reduction in battery range, also attributed to a software update.

Norway's EV Leadership

Norway currently holds the position of European leader in electric vehicle adoption. In 2020, battery electric vehicles comprised 54% of all new vehicle sales, as stated by the Norwegian Road Federation.

The Audi e-tron was the best-selling vehicle that year, closely followed by the Tesla Model 3.

Here's a summary of key points:

  • Ruling: Tesla must compensate Model S owners.
  • Amount: 136,000 NOK ($16,000) per vehicle.
  • Cause: Software update slowed charging times.
  • Affected Vehicles: Model S (2013-2015).
  • Potential Payout: Up to $163 million.
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